Utica Shale infrastructure agreement for MarkWest and Rex Energy

Source: MarkWest Utica EMG

MarkWest Utica EMG, L.L.C. (MarkWest Utica EMG), a joint venture between MarkWest Energy Partners, L.P. (NYSE: MWE) (MarkWest) and The Energy and Minerals Group (EMG), today announced definitive agreements with Rex Energy Corporation (NYSE:REXX) (Rex) to provide gathering, processing, fractionation, and marketing services in the Utica Shale.

In Rex Energy’s Warrior South Prospect, the company holds approximately 4,100 net acres. To date, the company drilled and completed three wells in the Warrior South Prospect. These wells have been shut-in since their completion and will be placed into sales once the related infrastructure is in place. In 2013, Rex Energy plans to drill and complete four additional wells and place into service seven wells in the Warrior South Prospect.

MarkWest Utica EMG expects to begin gathering and processing Rex's liquid-rich gas production in approximately June of this year. To support Rex and other Utica producers, MarkWest Utica EMG is constructing an extensive gathering system, two large- scale processing complexes and a C2+ fractionation and marketing complex by early 2014. When completed, MarkWest Utica EMG and MarkWest will have the largest processing and fractionation capacity in the Utica Shale. The fractionation facility will also be connected by an NGL pipeline to MarkWest’s extensive NGL infrastructure in the Marcellus Shale and to its Houston, Pennsylvania complex, the largest fractionation and marketing facility in the Northeast. The large-scale and fully-integrated midstream system will provide significant flexibility and redundancy for Rex and other producer customers operating in the core liquids-rich area of the Utica Shale.

“We are excited to further expand our relationship with Rex as they develop their highly-prospective acreage in the Utica Shale,” said Frank Semple, Chairman, President and Chief Executive Officer of MarkWest. “Rex is a proven operator with extensive experience in the development of unconventional resource plays and this agreement further supports the build out of our midstream infrastructure in the Utica Shale.”

“We are pleased to build on our already strong relationship with MarkWest as we develop our Utica Shale acreage,” said Tom Stabley, Chief Executive Officer of Rex Energy. “MarkWest’s extensive midstream experience will enable Rex Energy to further develop the value of our Warrior South prospects. Working together, we will continue to advance the responsible development of Rex Energy’s acreage in the Utica Shale.”

Whitepapers

Pervasive Governance: Rethinking Traditional Approaches to Information Governance for Oil & Gas

Information is an organization’s most important strategic asset – the “lifeblood” of the organiza...

OSHA 1910.269 Are You Regulation Ready?

Read this Q&A to learn about changes to federal regulations and how to select FR garments for...

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New ...

On the Radar: EMC Supplier Exchange

This report addresses key issues for managers of complex contracts in energy and engineering. Thi...

Webcasts

Adding GPS vehicle management to your team

A GPS fleet management system can be a highly effective tool to help lower costs, improve productivity, and manage your vehicles more efficiently. But with many vendors and prod...
( 08/25/2015 / 12:00 PM Eastern Daylight Time / 11:00 AM Central Daylight Time / 09:00 AM Pacific Daylight Time / 16:00 GMT )
Sponsored by

Transforming the petroleum supply chain with the Internet of Things

The equipment involved in producing, moving, refining and selling petroleum is expensive, and rugged, and comes from hundreds of manufacturers. Enhanced by the Internet of Thing...
Sponsored by

Connected Decision-Making: Improving Asset Operations Through Comprehensive Information Management

Energy asset operators are faced with a paradigm today: increase efficiency and reliability levels while fighting to extend the lifespan of these aging asset. To meet these oppo...
Sponsored by

Latest Energy Jobs

View more Job Listings >>